Posted: October 26th, 2023

The low-carbon development of shipping industry in China

The low-carbon development of shipping industry in China

The shipping industry is a vital part of the global economy, transporting about 80% of the world’s trade by volume. However, it also contributes to greenhouse gas (GHG) emissions, accounting for about 3% of the global total. As the world strives to achieve the Paris Agreement goals and limit the global temperature rise to well below 2°C, the shipping industry faces the challenge of decarbonizing its operations and reducing its environmental impact.

China is a major player in the global shipping industry, with the largest merchant fleet by deadweight tonnage and the largest shipbuilding capacity. China is also a signatory to the Paris Agreement and has committed to peak its carbon emissions by 2030 and achieve carbon neutrality by 2060. Therefore, China has a significant role and responsibility in promoting the low-carbon development of the shipping industry, both domestically and internationally.

In this paper, we will analyze the current situation and future trends of the shipping industry’s GHG emissions, review the existing policies and measures for low-carbon development at the international and national levels, and propose some suggestions for China to accelerate its transition to a green and sustainable shipping industry.

1. Current situation and future trends of shipping industry’s GHG emissions

According to the Fourth IMO GHG Study 2020, the shipping industry emitted 1,076 million tonnes of carbon dioxide (CO2) in 2018, which was 2.89% of the global CO2 emissions. The CO2 emissions from international shipping accounted for 740 million tonnes (68.8% of the total), while those from domestic shipping accounted for 336 million tonnes (31.2% of the total). The study also projected that under different scenarios, the shipping industry’s CO2 emissions could increase by 90% to 130% by 2050 compared to 2008 levels, unless further mitigation actions are taken.

China’s domestic shipping sector emitted about 100 million tonnes of CO2 in 2018, which was about 9.3% of the global total and about 29.7% of China’s total transportation emissions. China’s domestic coastal shipping accounted for about 80% of the domestic shipping emissions, while inland waterway transport accounted for about 20%. According to a study by the International Council on Clean Transportation (ICCT), China’s domestic coastal shipping sector could see its CO2 emissions increase by 150% by 2050 under a business-as-usual scenario, or decrease by 85% under an ambitious scenario.

2. Existing policies and measures for low-carbon development of shipping industry

At the international level, the International Maritime Organization (IMO) is the main body that regulates the shipping industry’s GHG emissions. In 2018, IMO adopted an initial strategy on reduction of GHG emissions from ships, which set out a vision to reduce the shipping industry’s GHG emissions by at least 50% by 2050 compared to 2008 levels, while pursuing efforts towards phasing them out entirely. The strategy also included specific targets for improving the energy efficiency of ships and reducing the carbon intensity of shipping. To implement the strategy, IMO has adopted several technical and operational measures, such as the Energy Efficiency Design Index (EEDI) for new ships, the Ship Energy Efficiency Management Plan (SEEMP) for existing ships, and the Carbon Intensity Indicator (CII) for measuring and rating ships’ performance.

At the national level, China has also taken some actions to promote the low-carbon development of its domestic shipping sector. In 2016, China issued a national plan on addressing climate change (2016-2020), which included a target to reduce the carbon intensity of transportation by 18% by 2020 compared to 2015 levels. In 2019, China issued a guidance on promoting green development of transport, which proposed some measures to improve energy efficiency, optimize transport structure, promote new energy vehicles, and enhance environmental management in transport sector. In addition, China has implemented some specific policies and standards for its domestic coastal shipping sector, such as setting energy efficiency requirements for new ships, establishing emission control areas in key coastal regions, and encouraging the use of alternative fuels such as liquefied natural gas (LNG).

3. Suggestions for China to accelerate its transition to a green and sustainable shipping industry

Based on the analysis above, we can see that China has made some progress in promoting the low-carbon development of its domestic shipping sector, but there is still much room for improvement and innovation. Therefore, we suggest that China should take the following actions to accelerate its transition to a green and sustainable shipping industry:

– Strengthen government leadership and coordination: China should formulate a comprehensive and long-term plan for low-carbon development of its domestic shipping sector, aligning with its national “dual-carbon” goals and the international IMO strategy. China should also enhance the coordination and cooperation among different ministries, departments, and local governments, as well as between the public and private sectors, to ensure the effective implementation of the plan.
– Accelerate technological innovation and application: China should increase its investment in research and development of low-carbon technologies for shipping, such as energy-saving devices, alternative fuels, and digitalization. China should also accelerate the market application and promotion of these technologies, by providing financial incentives, technical support, and regulatory guidance to the shipping industry.
– Promote international cooperation and participation: China should actively participate in the international negotiations and rule-making on shipping emissions reduction under IMO, and contribute to the development of a fair and effective global regime. China should also enhance its bilateral and multilateral cooperation with other countries and regions, especially those along the Belt and Road Initiative, to share best practices, exchange experiences, and promote joint actions for green shipping.

Works Cited

– International Maritime Organization. Fourth IMO GHG Study 2020. London: IMO, 2020.
– Liu, Huirong et al. “Analysis of international shipping emissions reduction policy and China’s participation.” Frontiers in Marine Science 10 (2023): 1093533.
– Wang, Xuecheng et al. “Research on the Low-Carbon Development Path and Policy Options of China’s Transportation Under the Background of Dual Carbon Goals.” Frontiers in Environmental Science 10 (2022): 905037.